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Senior Citizen/Varishtha Pension Scheme – 2017

Finance Minister has recently announced a special pension scheme for Senior (Varishtha) Citizens. Government is plans for launching of such a scheme which provides a assured interest rate to senior citizens. Such scheme had launched previously in the year 2003 and later in 2014.

As per finance minister: “LIC will implement a scheme for senior citizens to provide assured pension, with a guaranteed return of 8% per annum for 10 years. For senior citizens, Aadhaar based smart cards containing their health details will be introduced. A beginning will be made through a pilot in 15 districts during 2017-18.”

The “Varishtha Pension Bima Yojana 2017” is aimed to proved income security to citizens aged 60 years and above against a future fall in their interest income due to uncertain market conditions. It will provide an assured pension based on a guaranteed rate of return of 8 per cent for 10 years. Senior citizens can opt for pension on a monthly/quarterly/half-yearly or annual basis under the Varishtha Pension Bima Yojana 2017.

The government’s statement on Varishtha Pension Bima Yojana 2017 does not mention the maximum amount that can be invested under the scheme. However, PM Modi had in his New Year Eve’s address said that up to Rs. 7.5 lakh could be invested in such a scheme. Financial planners are awaiting more details on the Varishtha Pension Bima Yojana 2017.